Russian stocks close mixed on falling oil, mixed environment

MOSCOW, May 20 (PRIME) -- Russian stocks closed mixed on Friday as contraction of oil prices and a mixed external background did not provide the market with strong positive drivers, analysts said.

The MICEX fell 0.01% to 1,891.33 and the RTS increased 0.87% to 893.09.

The Brent oil price fell 0.329% to U.S. $48.65 as of 6.10 p.m. Moscow time, according to the ICE exchange.

“The external background is mixed. Futures for U.S. and Asian stock indices are growing, but oil started to fall after an attempt to restore. It looks like the factors of wildfires in Canada, attacks on oil production in Nigeria and local conflicts in Libya have already been priced in. Moreover…it may be compensated by growth of production in Iran,” Irina Rogova, an analyst at Forex Club group of companies, said.

Besides the fact that the Russian market is overbought, the recent minutes of the U.S. Federal Reserve System’s (Fed) latest meeting increased concerns of a rise in the Fed’s key rate at a June meeting, Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

“The (U.S.) job market statistics is positive, so the number of reasons to toughen the monetary policy is increasing. The strengthening of the U.S. dollar also supported contraction of the oil prices,” Kirsanova said.

Certain influence on dynamics of the stock market was provided by media reports that the E.U. may extend anti-Russian sanctions for six months in June. “In this case, the softening of the sanctions will be delayed to at least December,” Igor Kovalyov, an analyst at InstaForex group of companies, said.

“Slight strengthening of the ruble’s rate against yesterday’s level allowed the foreign currency-denominated RTS index to stay in the green zone,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Common shares of gold producer Lenzoloto rose 0.88% to 9,170 rubles, while preferred shares fell 3.95% to 5,600 rubles. The mixed dynamics are explained by a Thursday recommendation of the company’s board of directors to pay 690.15 rubles per preferred share in dividends for 2015, while no dividends were recommended on common shares, Manzhos said.

Mobile operator MTS was one of the growth leaders today with shares rising 2.14% to 258 rubles. The company’s results for January–March were strong, as its net profit under International Financial Reporting Standards (IFRS) increased 33.3%, and no new information came about the Uzbek case, Kirsanova said.

Global depositary receipts of agricultural holding Rusagro lost 0.85% to 934 rubles as the company’s net profit under IFRS plunged 91% in January–March, Kirsanova said.

Below are the MICEX’ five most active stocks on Friday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.16	121.90	6.572
Gazprom	-1.10	146.70	5.914
Lukoil	+0.61	2712.00	2.834
Norilsk Nickel	-0.76	9120.00	1.622
Rosneft	-1.62	324.65	1.479

(66.2110 rubles – U.S. $1)

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